Ethereum Classic faces stiff resistance on approach to $12.00

Ethereum Classic (ETC), currently the 15th largest digital asset with the market value of $1.3 billion, has gained 1.3% in recent 24 hours. It is one of a few top-20 altcoins in a green zone on Tuesday. The reported trading volume with ETC reached $2.9 billion.

Ethereum Classic enters the world of DeFi

ETC Labs announced a partnership with Fantom Foundation to bring crypto-related DeFi features to the Fantom ecosystem. The Fantom Foundation is a non-profit project and an open-source, modular platform for DLT products. 

However, Ethereum Classic will only be used as collateral on the Fantom platform that will use a DeFi framework Xar Network specifically developed for the project.

Michael Chen, CMO of The Fantom Foundation, commented:

We’re collaborating with ETC Labs to bring DeFi, including all aspects of our tech stack (e.g., stablecoins, lending, staking, asset issuance, collateralization, etc.) to the Xar ecosystem. 

Fantom provides solutions for large companies and governmental, while ETC protocol will be used to mint stablecoins on permissioned networks. They will be hosted on Xar Network’s blockchain-based stablecoin protocol.

ETC/USD: Short-term support may slow down the bears

ETC/USD bottomed at $11.03 on February 6 and has been range-bound with bullish bias ever since. Currently, the coin is trading inside a channel with the upper boundary at $12.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $13.00 followed by the recent high of $13.18.

On the downside, strong short-term support is located below the current price. It is created by a combination of SMA50 and SMA100 1-hour and the lower line of 1-hour Bollinger Band. A sustainable move lower will increase the downside pressure and push the price towards $11.00.

ETC/USD 1-hour chart